In the News

Dollar Buoys Foreign M&A

NJBIZ

June 16, 2008

This NJBIZ article discusses “The dollar volume of mergers and acquisitions worldwide in the pharmaceutical industry rose by almost 43 percent last year, with much of the activity coming from foreign firms snagging U.S. companies at discount prices…” The article continues, “The weak dollar and strong euro is helping European and Asian firms to acquire U.S.-based drug makers for ‘half of what it would’ve cost them five years ago,’ says Steven Gross, chairman of Newark-based law firm Sills Cummis & Gross. While a similar scene is playing out across many industries, it is ‘accelerating’ in the drug industry because the U.S. is ‘still looked at as the pharmaceutical capital of the world,’ he says.” According to the article, "[T]here will be fewer big deals in the coming years, says Gross.” He states, “It will just get harder and harder. There are fewer targets because we’ve already had significant consolidation. And you start running into problems like antitrust issues.”